City of Culver City, California
Agenda Item Report
Meeting Date: 12/05/2011 Item Number: C-8
CITY COUNCIL AGENDA ITEM: (1) Reject Bids submitted by Rafael 26
Construction, Inc. and Araghi Corporation; and (2) Award a Construction Contract
to Hoffman Management and Construction Corporation for the Construction of Fire
Station #1 Exterior Staircase Reconstruction Project, P-931.
Contact Person/Dept.:
Lee Torres/PW
Phone Number:
(310) 253-5623
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (12/1/11); (Telephone)
All Bidders (11/23/11)
Department Approval:
Charles D. Herbertson (11/22/11)
City Attorney Approval:
Carol Schwab (by H. Baker) (11/28/11)
Chief Financial Officer Approval:
Jeff Muir (by K. Marsden) (11/29/11)
City Manager Approval:
John M. Nachbar (11/29/11)
RECOMMENDATION:
Staff recommends that the City Council:
1) Reject the bids submitted by Rafael 26 Construction Inc. and Araghi Corporation
due to their bids being non-responsive; and,
2) Award a construction contract to Hoffman Management and Construction Inc.
(Hoffman) as the lowest responsive and responsible bidder to complete the
necessary work for the Fire Station #1 Exterior Staircase Reconstruction Project,
P-931.
BACKGROUND/DISCUSSION:
On August 22, 2011, the City Council approved the final plans and specifications to
replace the exterior staircase located at the back of Fire Station #1 and authorized
the advertising of construction bids.
On September 22, 2011, the City Clerk’s Office publicly opened the bids. Seven (7)
contractors responded with the following bid amounts:
City of Culver City, California
Agenda Item Report
CONTRACTOR BID AMOUNTS
1 Rafael 26 Construction, Inc., Los Angeles, CA $38,520.00
2 Araghi Corp., Los Angeles, CA $48,574.00
3 Hoffman Mgmt. & Const. Corp., Los Angeles, CA $52,857.75
4 Magic Hammer Development, Inc. $68,128.00
5 The Richard Group, Murrieta, CA $73,000.00
6 Fast Track Const. Corp., Culver City, CA $96,800.00
7 Parker Brown Inc., Canoga Park, CA $102,291.00
Bid Review
The original bid proposals from Rafael 26 Construction Inc. (Rafael 26), first low
bidder, and Araghi Corporation (Araghi Corp.), second low bidder, were reviewed
and did not contain relevant construction experience information as required in the
bid documents. The third low bidder, Hoffman, provided all the required construction
experience information, except a tentative construction schedule.
Due to missing information by all three of the lowest bidders, in consultation with the
City Attorney’s Office, staff gave an opportunity to the three (3) low bidders to re-
submit missing information within two days.
The three low bidders resubmitted the missing items within two days. After thorough
review, Rafael 26 and Araghi Corp still did not meet the minimum construction
experience required by providing at least two (2) “steel staircase” construction
projects and two (2) projects involving water intrusion related repair as required in
the bid documents. Hoffman provided a proposed tentative construction schedule
which was deemed acceptable.
Rafael 26 and Araghi Corp were both notified by telephone and letter that staff will
be recommending the City Council reject their bid proposals due to not meeting the
minimum construction experience required in the Plans and Specifications.
Staff verified all references provided by Hoffman and received positive feedback
regarding the contractor’s performance, and they were highly recommended by
other government agencies.
Protest Letter
On November 7
th
, Staff received a letter from Araghi Corp. protesting the
recommended contract award to Hoffman Construction. Araghi Corp states that the
staff of their newly established corporation has ample construction experience with
structural steel and concrete reinforcement.
City of Culver City, California
Agenda Item Report
However, Staff clearly requested in the Project Bid Specification specific experience
with projects involving “steel staircases”. Araghi Corps’ original proposal,
supplemental construction experience submitted on October 7
th
, and their protest
letter all failed to provide the requested information of having specific experience on
projects involving “steel staircases”.
Six of the seven proposals received provided at least one project of steel staircase
construction experience as outlined in the bid specifications. Therefore, Staff feels
that this requirement is neither unreasonable nor too restrictive for general
contractors to meet.
Should the City Council award the contract this evening, work is scheduled to begin
in January 2012 and be completed in two months.
FISCAL IMPACT:
The following chart contains fiscal information regarding award of the contract:
Proposed Project Budget
Funding Source Amount
42000931 $80,000.00
Total $80,000.00
Estimated Project Expenses
Fire Station #1 Exterior Staircase
Reconstruction Project.
$52,857.75
Contingency $12,412.25
Total Estimated Project Expenses $65,270.00
Staff recommends a total of $12,412.25 in contingency to account for any water
damage repair work which cannot be fully assessed until the walls are fully exposed.
ATTACHMENT:
• Protest Letter from Araghi Corp dated November 6, 2011
• City’s Response Letter dated November 16, 2011
City of Culver City, California
Agenda Item Report
MOTIONS:
That the City Council:
1) Reject the bids submitted byRafael 26 Construction, Inc. and Araghi Corporation
due to its bids being non-responsive; and,
2) Award a contract toHoffman Management and Construction Corporation for the
Fire Station #1 Exterior Staircase Reconstruction Project, P-931, in the amount of
$ 52,857.75, based on its base bid; and,
3) Authorize the Public Works Director/City Engineer to approve change orders in
an amount not-to-exceed $12,412.25, if necessary; and,
3) Authorize the City Attorney to review/prepare the necessary documents; and,
4) Authorize the City Manager to execute such documents on behalf of the City.
MEETING DATE: 12/05/11
AGENDA ITEM:
(1) Reject Bids submitted by Rafael 26 Construction, Inc. and
Araghi Corporation; and (2) Award a Construction Contract to
Hoffman Management and Construction Corporation for the
Construction of Fire Station #1 Exterior Staircase Reconstruction
Project, P-931
ATTACHMENTS
1 Protest Letter from Araghi Corp dated November 6, 2011
2 Response Letter dated November 16, 2011
Pages
1-2
3-4 ARAGHI CORP.
November 6, 2011
City of Culver City
Dept. of Public Works/ Engineer Division
Attn: Mr. Lee Torres /Associate Engineer
9770 Culver Boulevard
Culver City ; CA 90232
RE: award of Fire Station #1 Exterior Staircase Reconstruction Project, P-931
Mr. Torres,
We are disappointed to hear the decision from your department in not awarding the Fire
Station #1 Exterior Staircase Reconstruction Project, - P-931 to our company. My
understanding is that you will be recommending your decision to the City Council
tomorrow 11-7-11.
Is there an official appeal process that will allow us a second chance in being reviewed
for award of this project?
Araghi Corp is a fairly newly established corporation, however the experience of the
shareholders and executive staff of this company holds over 20 years experience in
Public Works construction and we consider this project a very minor and small scale
project. A majority of the projects completed by the executive staff have been for the
seismic retrofit of bridge super structures with structural steel and concrete re-
enforcements bid items.
Our listed sub-contractor for this project responsible for completing the fabrication of the
steel staircase holds a C-51 license and also has over 20 years experience in the field of
steel fabrication, which include steel staircases_
Araghi Corp feels confident that given the extensive experience of its representatives who
will be actively involved in this project and the professional dedication that we show each
and every project in which we are contracted to complete that we will be able to deliver
the finest finished product using only the best skill and workmanship the industry has to
offer. 1, as President of Araghi Corp can give you my personal guarantee that the City of
Culver City will not regret awarding this project to our firm.
GENERAL ENGINEERING & BUILDING CONTRACTOR LICENSE # 956976
2045 Pelham Ave. Los Angeles, CA 90025, Tel.: (310) 415-1118, Fax: (310) 441-1530
Page 1 ARAGIII CORP.
We hope that your department will reconsider its decision in making its recommendation
to the City Council and proceed with awarding the project to Araghi Corp.
Thank you,
Sam Araghi
President
Araghi Corp.
General Engineering & Building Contractor
Page 2
GENERAL ENGINEERING & BUILDING CONTRACTOR LICENSE It 956976
2045 Pelham Ave. Los Angeles, CA 90025, Tel.: (310) 415-1118, Fax: (310) 441-1530 (310) 253-5600
FAX (310) 253-5626
Charles D. Herbertson, P.E., LS
Public Works Director and
City Engineer
PUBLIC WORKS DEPARTMENT
9770 Culver Boulevard, Culver City, California 90232
Mate Gaspar, P.E.
Engineering Services Manager
Fax #310.441.1530
November 16, 2011
Mr. Shahin Araghi
Araghi Corporation
2045 Pelham Avenue
Los Angeles, CA 90025
Culver City Fire Station #1 Exterior Staircase Reconstruction Project, P-931
Response Letter to Protest of Award
Dear Mr. Araghi,
The City is in receipt of your letter dated November 6, 2011 protesting the
recommendation to award the above construction contract to Hoffman
Management and Construction and requesting an appeal of Staffs decision.
I have carefully reviewed with my Staff your bid documents, letters,, and
additional construction experience you provided on October 7, 2011. Based on
my review of the documents, I have concluded that you did not provide the
minimum construction experience of least two (2) "steel staircase" construction
projects and two (2) projects involving water intrusion related repair as outlined in
the Bid Specifications, Section C, 5.6.2 (a) We have also determined that most
of the bidders on the project provided documentation of construction experiences
with steel staircase projects. It appears that there is an ample amount of
qualified contractors that can conduct steel staircase construction for the City.
We do not consider this project to be unique and lacking project interest.
Please be advised that Public Works Department will continue to recommend to
the City Council on December 5, 2011, 7:00 p.m. at the City Council meeting to
find Rafael 26 and Araghi Corporation as non-responsive bidders and reject their
Culver City Employees take pride in effectively providing the highest levels of service to enrich the quality of life for the community by building on
our tradition of more than seventy-five years of public service, by our present commitment, and by our dedication to meet the challenges of the
future.
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bid proposals, and award the contract to the third lowest bidder, Hoffman
Management and Construction, for the construction of Fire Station #1 Exterior
Staircase Reconstruction Project, P-931.
If you have any questions, please contact Lee Torres, Project Manager/Associate
Engineer at 310.253.5623.
1 \ •
--------,
Charles D. H bertson, RE. Public Works Director/ City Engineer
CC: Mate Gaspar, RE., Engineering Services Manager
Lee Torres, Project Manager/Associate Engineer
erely,
N
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